It’s Time to switch to Quality IT stocks:

The global economy has been going through a phase of slowdown. The financial crises have only added to this slowdown. Reigning high crude prices, escalating costs and fears of recession have cast a cloud of uncertainty over the IT spends of clients. Given such a backdrop majority of the brokerage houses are advising investors to shift their portfolio to large cap stocks due to the following reasons:

• Clients would go in for vendor consolidation. This would benefit large companies (the big companies are among the top three to four vendors for most of their top clients).
• IT budgets are expected to remain flat as compared to last year, but as expected offshoring to increase, which would benefit the larger players the most.
• The bigger companies have the scale and the management bandwidth to withstand a period of flattish growth in revenues. Also, they have greater flexibility in managing client’s accounts.
• Larger companies with a wider base of customers will be relatively less impacted by lack of spending by a particular client unlike mid or small tier companies who are more dependent on single clients.

Thus investors start locking your money into Infy, Wipro, TCS, HCL etc.

Regards
Praveen Kumar
www.laymansfinance.blogspot.com

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